BILL ANALYSIS                                                                                                                                                                                                    



                                                                    AB 1066


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          1066 (Gonzalez, et al.)


          As Amended  August 17, 2016


          Majority vote


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          |ASSEMBLY:  |      |(June 2, 2015) |SENATE: |      |(August 22,      |
          |           |      |               |        |21-14 |2016)            |
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          |           |      |               |        |      |                 |
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                 (Vote not relevant)




          Original Committee Reference:  P.E.,R. & S.S.


          SUMMARY:  Enacts the Phase-In Overtime for Agricultural Workers  
          Act of 2016, as specified.


          The Senate amendments delete the contents of the bill and  
          instead:


          1)Provide that, beginning July 1, 2019, any person employed in  
            an agricultural occupation shall not be employed more than  
            nine and one-half hours in any one workday or work in excess  
            of 55 hours in any one workweek, unless the employee receives  
            one and one-half times that employee's regular rate of pay for  
            all hours worked over nine and one-half hours in any workday  
            or over 55 hours in any workweek.  This requirement shall  








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            apply to an employer who employs 25 or fewer employees  
            commencing January 1, 2022.


          2)Provide that, beginning January 1, 2020, any person employed  
            in an agricultural occupation shall not be employed more than  
            nine hours in any one workday or work in excess of 50 hours in  
            any one workweek, unless the employee receives one and  
            one-half times that employee's regular rate of pay for all  
            hours worked over nine hours in any workday or over 50 hours  
            in any workweek.  This requirement shall apply to an employer  
            who employs 25 or fewer employees commencing January 1, 2023.


          3)Provide that, beginning January 1, 2021, any person employed  
            in an agricultural occupation shall not be employed more than  
            eight and one-half hours in any one workday or work in excess  
            of 45 hours in any one workweek, unless the employee receives  
            one and one-half times that employee's regular rate of pay for  
            all hours worked over eight and one-half hours in any workday  
            or over 45 hours in any workweek.  This requirement shall  
            apply to an employer who employs 25 or fewer employees  
            commencing January 1, 2024.


          4)Provide that, beginning January 1, 2022, any person employed  
            in an agricultural occupation shall not be employed more than  
            eight hours in any one workday or work in excess of 40 hours  
            in any one workweek, unless the employee receives one and  
            one-half times that employee's regular rate of pay for all  
            hours worked over eight hours in any workday or over 40 hours  
            in any workweek.  This requirement shall apply to an employer  
            who employs 25 or fewer employees commencing January 1, 2025.


          5)Provide that the term "employed in an agricultural occupation"  
            has the same meaning as in a specified Wage Order of the  
            Industrial Welfare Commission.


          6)Provide that, beginning January 1, 2022, any work performed by  
            a person employed in an agricultural occupation in excess of  








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            12 hours in one day shall be compensated at the rate of no  
            less than twice the employee's regular rate of pay.  This  
            requirement shall apply to an employer who employs 25 or fewer  
            employees commencing January 1, 2025.


          7)Provide that all other provisions of existing law regarding  
            compensation for overtime work shall apply to workers in an  
            agricultural occupation beginning January 1, 2017.


          8)Beginning in 2018, authorize the Governor to temporarily  
            suspend the scheduled phase-in of overtime requirements set  
            forth above if the Governor suspends scheduled minimum wage  
            increases for specified "economic conditions" under provisions  
            of law enacted this year pursuant to SB 3 (Leno), Chapter 4,  
            Statutes of 2016.  This authority shall end upon the final  
            phase-in of overtime provisions or January 1, 2025, whichever  
            comes first.


          9)Require the Department of Industrial Relations to update  
            Industrial Welfare Commission Wage Order 14 to be consistent  
            with this bill, except that any provisions of existing law  
            applicable to persons employed in agriculture providing  
            greater protections or benefits to agricultural employees  
            shall continue in full force and effect.


          10)Make related legislative findings and declarations.


          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee, the Department of Industrial Relations indicates that  
          it would incur administrative costs of in the range of $326,000  
          to $586,000 in the first year and $311,000 to $563,000 annually  
          thereafter.


          COMMENTS:  This bill is sponsored by the United Farm Workers  
          (UFW), who argues that farm workers engage in back-breaking work  
          every day.  Few occupations in today's America are as physically  








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          demanding and exhausting as farm work.  Yet no job in America  
          requiring such demand on the human body pays less for a long  
          day's work than what this bill is asking for farm workers.


          UFW states that is has been 77 years since farm workers were  
          excluded from the wage protections and maximum hour standards  
          through the enactment of the federal Fair Labor Standards Act.   
          Excluding farm workers is part of our country's shameful legacy  
          that initially targeted African-Americans who were farm workers  
          in the 1930s.  They argue that excluding farm workers from  
          overtime was wrong in 1938, and is wrong today.


          A coalition of agricultural employers and others opposes this  
          bill, arguing that, because farmers, their employees and their  
          operations are critically affected by the uncontrollable whims  
          of nature and the seasonality of agricultural production,  
          agriculture needs greater flexibility in scheduling work than do  
          other industries.  Opponents note that California is one of only  
          a few states that require premium pay for overtime worked by  
          farm workers.  California's regulation is one of the most  
          generous in its coverage and requires agricultural workers  
          receive overtime pay for hours worked over 10 in a workday.


          Opponents also believe this bill will backfire, hurting family  
          farmers and cutting agricultural workers' paychecks.  They  
          contend that farmers will likely avoid the additional costs  
          imposed by this bill by limiting worker hours and hiring more  
          farm workers to make up the difference whenever possible.


          This bill is similar to AB 2757 (Gonzalez), which failed passage  
          on the Assembly Floor earlier this year.


          Analysis Prepared by:                                             
                          Ben Ebbink / L. & E. / (916) 319-2091  FN:  
          0004404










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